Online Advertising Simplified
March 28, 2018
When it comes to learning or trying something new, it can be quite difficult and tedious at times. Throw in some technical jargon and abbreviations and it’s easy to become discouraged. This definitely applies to the world of Online Advertising so I’ve decided to put together some simple explanations for the most common terms you’re likely to come across in your online marketing campaigns. This will especially prove helpful for small business owners who are contemplated advertising online or have recently started advertising on Facebook or on Google Adwords - This short list of 10 of the most used advertising terms will hopefully give your business a better understanding of how your advertising budget is being spent and how your adverts are performing
So here we go -
1) Ad Click: The action taken when a user interacts with an ad by click on an advertising campaign
2) Cost per Click (CPC): How much an advertiser pays, on average, for each ad click. CPC is calculated by dividing the total amount spent on a campaign by the number of clicks generated.
3) Cost per Thousand (CPM): This shows how much it costs to serve 1,000 ad impressions, which leads us to numbero quatro...
4) Impressions: no. of times an advertisements or any other form of digital media (photo/text/video) appears on a user's screen
5) Conversion: When launching a campaign, advertisers select a specific action or set of actions they want audiences to take. Each time a member of the audience takes this action, it is counted as a conversion. Conversions can be anything from signing up for a newsletter, or making a purchase on a website.
6) Click through Rate (CTR): Expressed as a percentage of total impressions, this percentage shows how often people who are served an ad end up clicking on it.
An ads CTR is calculated by dividing the number of clicks an ad received by the number of times its been served, then converting that into a percentage. For example, if an ad received 9 clicks and was shown 1000 times, the CTR is 0.9%. The higher the CTR on an ad, the better its performing.
7) Cost per Acquisition: The cost of acquiring one customer. Typically calculated by dividing the total amount spent on an advertising campaign by the number of customers acquired through that campaign.
8) Keyword: A specific word or phrase chosen by advertisers to include in their ad within search engine results.
9) Reach: The total number of people who see your message. One person who is served your ad five times and clicks on it once yields a reach of 1, 5 impressions, and a clickthrough rate of 20%.
10) Audience: The total number of people that have been exposed to or could possibly be exposed to an ad during any specific time period.
Hope you found this somewhat helpful. If you enjoyed reading this, feel free to share or if you have any questions or need help with your online advertising, feel free to contact us here